The Cabinet Office’s new shared services strategy was driven by the prospect of a £47m upgrade for Oracle ERP systems, says the National Audit Office (NAO)

The Cabinet Office’s new shared services strategy was driven by the prospect of a £47m upgrade for Oracle ERP systems in three of its shared services centres, according to the National Audit Office (NAO).

One of the urgent drivers in publishing its new strategy last year was that three shared service centres faced an investment of £47m to upgrade their Oracle ERP systems before November 2013, said the NAO.

“This gave the Cabinet Office an opportunity to see if it could derive better value-for-money options for shared services,” said the NAO.

The Cabinet Office data show that the total spend on finance, HR, procurement and payroll is £1.5 billion a year.

Under its new strategy, the Cabinet Office expects minimum savings of up to £128m per year. It will have to spend £50m in transition costs and up to £77m on redeployment to achieve this – although it will see a one-off saving of £32m by avoiding the Oracle upgrade costs, said the NAO.

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